Maryland HOA Reserve Fund Requirements (2026)
Md. Code, Real Property §§ 11-101 et seq. (Maryland Condominium Act); HB 848 (2023)
Law changed after Surfside — new requirements apply
Maryland's HB 848 (2023) expanded reserve study requirements for condominiums following the Surfside collapse, requiring periodic professional reserve studies and disclosure of findings to owners.
Yes
Reserve study required for condominiums; study must be updated every 5 years per 2023 legislation
None
No statutory minimum funding percentage; board must follow the reserve study's recommended funding plan
Yes
Reserve study results and funding status must be disclosed to unit owners annually as part of the budget process.
Yes
New law passed after June 2021
- Reserve study required for condominiums per HB 848 (2023); update every 5 years
- Reserve study results must be disclosed to unit owners as part of annual budget process
- Board must follow the reserve study's recommended funding plan or document deviation
- No statutory minimum funding percentage, but 70%+ is the industry benchmark
- Fannie Mae and FHA guidelines apply regardless of state law
Reserve study results and funding status must be disclosed to unit owners annually as part of the budget process.
Fannie Mae requires HOA to allocate at least 10% of assessments to reserves or demonstrate a 10% funding ratio. FHA requires similar. Low reserve funding can block unit sales and refinancing.
Fannie Mae requirement
Minimum 10% of assessments allocated to reserves, or a demonstrated 10% funding ratio. Associations below this threshold may face loan-level pricing adjustments or deal failure.
FHA requirement
Similar 10% minimum allocation. FHA-backed financing unavailable for units in HOAs that do not meet the threshold, reducing the buyer pool and depressing values.
- Comply with Maryland's 2023 reserve study requirements — professional study required for condominiums
- Update your reserve study every 5 years as required by HB 848
- Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
- Disclose reserve study results to unit owners during the annual budget process
- Consult an HOA attorney to confirm which provisions apply to your specific association type
Related tools for Maryland HOA boards
Managing reserves for a Maryland HOA? LotWize tracks your reserve contributions automatically.
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Start 14-Day Free TrialThis page provides general legal information about Maryland HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Maryland HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.